Labissiere Bonilla Exotic Garments accounts for inventory on a periodic system. During its first year of operations, the company made the following purchases (listed in chronological order of acquisition):

• 42 units at $105 per unit
• 74 units at $88 per unit
• 174 units at $58 per unit

Sales for the year totaled 269 units, leaving 21 units on hand at the end of the year. Ending inventory using the average cost method is: (Do not round unit cost calculation. Round your final answer to the nearest whole dollar amount.)

Multiple Choice

• $1,268.

• $1,522.

• $1,218.

• $2,205.

Junaid, Mensah & Yen Enterprises executed a purchase agreement on 07/10/2021 to buy inventory for $350,000 on or before 02/15/2022 from Liu & Liang Timber. Junaid, Mensah & Yen Enterprises' fiscal year-end is December 31 and the company maintains a perpetual inventory system. The purchase agreement was exercised on 02/01/2022 and settled in cash at the purchase agreement price. On the exercise date, the market price of the inventory was $364,000; on 12/31/2021, the market price was $325,000. What is the loss on purchase commitment recognized by Junaid, Mensah & Yen Enterprises in 2021?

Multiple Choice

• $39,000.

• None.

• $14,000.

• $25,000.